PRICES & POLITICS

Wairarapa Times-Age, 21 July 1943, Page 4

PRICES & POLITICS

REDUCTIONS ANNOUNCED IN AUSTRALIA CHEAPER POTATOES & TEA AND LOWER SALES TAX ON CLOTHING OPPOSITION ALLEGATION OF VOTE-CATCHING (By Telegraph—Press Association—Copyright) (Received This Day, 12.30 p.m.) SYDNEY, This Day. Big reductions in Australia's fixed prices of tea and potatoes and in the sales tax on clothing have been announced by the Federal Premier (Mr. Curtin). From today, the retail price of tea is fixed at pre-war levels—2s 3d per lb for first grade and Is lid per lb. for second grade. This is a reduction of Is 2d per lb. The price of potatdes 'will be fixed at 51b. for 6d. The cut operates in about a week, when old stocks are cleared. The sales tax on clothing and textiles will be reduced from 121 per cent, to 7|- per cent. This reduction operates as new stock replaces old stock, for which retailers paid the higher sales tax. The Government, will reimburse employers for the cost of living increase in wages, which will commence in August, as a result of retail price rises during the June quarter. The public has been promised increased supplies of essential vegetables and essential clothing. The Government will bear the cost of all these decisions which have been made as part of the prices stabilisation plan introduced some months ago. “The Government is firmly resolved that the price level and cost of living must be kept steady,” said Mr. Curtin, in announcin'?' the new nrice levels. “It

is equally concerned that sufficient goods should be made available at these prices to meet essential civilian requirements. The prices of nearly all the most important foodstuffs are already stabilised or controlled at a reasonable level.” The Opposition Leader (Mr. Fadden) describes the price reductions as “a vote-catching hand-out” and adds that Mr. Curtin hopes ,this will serve as a smoke-screen to conceal bungling and slovenly administration by the Government during the past 22 months. The “Sydney Morning Herald” comments editorially that a strong political flavour obtrudes itself in the Prime Minister’s announcement of the latest phase of price reduction policy. The lowering of the price of tea is estimated to sa»re the Australian public more than £2,000,000 a year. Tea retailers will receive reimbursement from wholesalers for' the loss involved in selling their present stocks at the new reduced prices.